Chapter 6.12, Problem 5P

Explanation of Solution

Reasons:

• The variable “${\text{t}}_{\text{j}}$” for “j=1,2,3” prices out to,

$\begin{array}{l}\left(\text{Hospital 1's dual price}\right)\left(-\text{output j created by hospital 1}\right)\text{+}\\ \left(\text{Hospital 3's dual price}\right)\left(-\text{output j created by hospital 3}\right)\text{+}\\ {\text{(Dual price of t}}_{\text{j}}\ge \text{0}\end{array}$